Retaliatory measures are now planned - and Europe will take Washington to the World Trade Organisation to challenge the legality of its move.
UK's Prime Minister, Theresa May has slammed Donald Trump, for his decision to impose tariffs on steel and aluminium producers, a decision that is pushing European Union to the brink of a trade war with the US. "Congress can not sit idly by as Donald Trump continues to isolate the United States and cede leadership to Russian Federation and China on the global stage".
"There were several issues discussed at the G7 over which there was no agreement", Scholz told reporters. And he said that while he was looking forward to continuing negotiations, the U.S.is making its decision on national security grounds - a justification Foreign Affairs Minister Chrystia Freeland has dismissed as absurd. They are joined at the meeting by officials from Britain, Germany, Italy, and Japan.
"We think that the G7 (meetings) will be useful if at the end of the G7, the United States is aware of the possible negative consequences of their decision on the unity of the G7 - not only the economic unity, but also the political one", Mr Le Maire said.
The world's largest economies stood on the brink of all-out trade war as the EU, Canada and Mexico drew up retaliatory measures to Washington's stinging steel and aluminium tariffs that came into effect on Friday.
That meeting, which will be hosted by Canadian Prime Minister Justin Trudeau, will be Trump's first visit to Canada as president. "If players in the world don't stick to the rulebook, the system might collapse".
In response, the European Union opened a case at the World Trade Organization (WTO) on Friday.
"We have been attacked by those tariffs".
The official said a range of issues remain to be resolved but the USA looks forward to continuing the negotiations with Canada.
The U.S. plan has raised the threat of retaliation from Europe and fears of a global trade war - a prospect that is already weighing on investor confidence and could hinder the global economic upturn.
White House: US ‘continues to actively prepare’ for summit
Meanwhile, a team of American diplomats are holding preparatory discussions with North Korean officials at the DMZ. Plans for the high profile sit-down were scrapped by Trump last week, but talks have continued.
European Union trade commissioner Cecilia Malmström has called the approach "pure protectionism", and described it as illegal under WTO trading rules.
Nevertheless, "the uncertainty about future trade and Trump's contempt for worldwide rules can deal a significant blow to business confidence especially in trade-oriented nations", the expert said.
That was "completely grotesque", Lamy said.
Le Maire said it's now up to the U.S.to take action to rebuild confidence among G7 members - and to avoid any escalation next week during the G7 leaders' summit.
"We are heading for a trade war, which is going to be all losers - there will be no winners".
However, they warned that the imposition of the tariffs "dents confidence", and could result in the delay or cancellation of new investment in the countries affected and might increase consumer price inflation. The United States rejected the offers.
"Even if the USA were to levy a 25 per cent tariff on auto imports from the EU, the direct damage to be shared largely between USA consumers and EU exporters would be equivalent to 0.08 per cent of EU GDP", he calculated.
"I know he has a very particular problem with German cars", warned Malmstrom.
"Plans by United States manufacturers to expand will be put on hold indefinitely", said Paul Nathanson, a spokesman for the Coalition of American Metal Manufacturers and Users, adding, "Companies will be forced into hard choices about technology, investment, and jobs".